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Stocks close little changed, flash manufacturing PMIs in focus
23-Sep-19 16:20 ET
Dow +14.92 at 26949.99, Nasdaq -5.21 at 8112.46, S&P -0.29 at 2991.82

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The S&P 500 finished flat on Monday in a mixed, and tight-ranged, session. Disappointing flash manufacturing PMI readings out of the eurozone kept many buyers sidelined, but encouraging manufacturing activity in the U.S. helped abate early selling pressure. The Dow Jones Industrial Average (+0.1%), Nasdaq Composite (-0.1%), and Russell 2000 (-0.1%) finished little changed.

The session began on a lower note, largely in response to those weaker-than-expected PMI readings overseas. Most notably, Germany's flash PMI for September fell deeper into contraction territory to its lowest reading (41.4) since 2009. The good news was that the Markit's flash manufacturing PMI reading for the U.S. increased to 51.1 from 50.3, reflecting the continued resiliency of the U.S. economy.

The S&P 500 was down just 0.3% at its session low and crossed into positive territory as soon as European markets closed for trading at 11:30 a.m. ET. The broader market maintained this positive disposition throughout the afternoon but faded into the close.

Most S&P 500 sectors finished within 0.3% of their unchanged marks. The consumer staples sector (+0.4%) outperformed the broader market, while the health care (-0.6%) and communication services (-0.4%) sectors underperformed.

Apple (AAPL 218.72, +0.99, +0.5%) and most stocks within the Philadelphia Semiconductor Index (+1.0%) showed relative strength throughout the day. The semiconductor space bounced back from Friday's decline following reports indicating that officials from the U.S. and China described last week's trade talks as "productive" and "constructive," respectively.

In corporate news, American Express (AXP 118.25, +1.45, +1.2%) announced a 120 million share repurchase program and increased its quarterly dividend 10%. Lululemon athletica (LULU 195.18, +5.88, +3.1) rose 3% after the stock was initiated with an Overweight rating at Piper Jaffray.

The U.S. Treasury market reflected some lingering growth concerns as increased demand pushed yields lower. The 2-yr yield declined three basis points to 1.67%, and the 10-yr yield declined six basis points to 1.71%. The U.S. Dollar Index increased 0.1% to 98.62. WTI crude rose 1.0%, or $0.60, to $58.64/bbl.

Investors did not receive any notable economic data on Monday. Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for September, the FHFA Housing Price Index for July, and the S&P Case-Shiller Home Price Index for July on Tuesday.

Nasdaq Composite +12.3% YTD
S&P 500 +19.3% YTD
Russell 2000 +15.6% YTD
Dow Jones Industrial Average +15.5% YTD